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64 Cards in this Set

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ABATEMENT OF NUISANCE
The act of ending or terminating a nuisance; a type of legal action brought to end a nuisance.
ABSOLUTE OWNERSHIP
See Fee Simple Estate
ABSTRACTORS
A person who, historically, searches out anything affecting the title to real property and summarizes the information in the findings.
ABSTRACT OF TITLE
A summary of the instruments
affecting title to a parcel of real property as shown by the public records.
ABSTRACTION
A method of valuing land. The indicated value of the imp rovement is deducted from the sale
price.
ABSTRACTION METHOD
Method of appraising
vacant land; allocation of the appraised total value or
sale price of the property between land and building
either on a ratio basis or by subtracting a figure
representing building value or price from the total
appraised value or price of the property. Also called
Allocation Method.
ACCELERATE
To make a note all due and payable at one time.
ACCREDITED MANAGEMENT ORGANIZATION(AMO)
A professional designation awarded to qualified property management firms by the institute of Real
Estate Management.
ACCREDITED RESIDENT MANAGER (ARM)
An individual who has completed IREM _s educational program for resident managers of residential property.
ACCELERATED COST RECOVERY SYSTEM (ACRS)
The system for figuring depreciation (cost reco very) for depreciable
real property acquired and placed into service after January 1,1981
ACCELERATED DEPRECIATION
A method of cost write-off in which depreciation allowances are greater in the first few years of ownership than in subsequent years. This permits an earlier recovery of capital and a faster tax write-off of an asset.
ACCEPTANCE OF AN OFFER
After ac ceptan ce of an offer, a broker may not return the buyer _s deposit without authorization
from the seller. An essential element of every contract, it is the
consent to be bound by the offer. In deeds, it is the consent to accept a grant of real property.
ACCESS RIGHT
The right of an owner to go into and out of his or her property.
ACCESSION
The acquisition of title to additional property by
its annex ation to real estate already owned . An addition to property through the efforts of man or by natural forces.
ACCELERATION CLAUSE
A clause in a deed of trust or mortgag e giving the lender the right to call all sums owing him or her to be immediately due and payable upon the occurrence
of a certain event. It is also a clause that permits a debtor to pay off a loan before the due date.
ACCOMMODATION PARTY
A person who, without
receiving value, signs a promissory note to help another person
borrow mon ey or get cre dit.
ACCOMMODATOR
An intermediary who holds funds in a delayed exchange.
ACCORD AND SATISFACTION
An agreement to accept
something different than (and usually less than) what the original contract called for. The discharge of an existing contract by accepting the performance under a substitute
contract. Generally, consideration under the new
contract is different from and of lesser value than under the original contract, and satisfaction is the performance of that ontract; the combination discharges the original contract.
ACCRETION
A gradual addition to land from natural causes; for example, from gradual action of ocean or river waters.
ACCRUE
To increase or accumulate; interest on loans is said to accrue daily.
ACCRUED DEPRECIATION
The difference between
the cos t of replacement of a new building, as o f the date
of the appraisal _ and the present appraised value.
Depreciation that has accumulated over a period of time.
(1) The difference between the cost of replacement new
as of the date of the appraisal and the present appraised value.
(2) The accumulated losses in value that has affe cted the im provements on real property.
ACCRUED ITEMS OF EXPENSE
Those incurred expenses which are not yet payable. The sellers accrued expenses are credited to the purchaser in a closing statement.
ACCUSATION
A written statement of rules violated, used in a property right healing.
ACKNOWLEDGMENT
When a person who has
signed a document formally declares to an authorized
public official (usually a notary public) that he or she
signed voluntarily. The official attests that the signature is voluntary and genuine. A formal declaration before a
notary public or qualified officer that the person signing the document is doing so voluntarily and using his or her legal nam e and s ignature; called notarizing.
ACOUSTICAL TILE
Blocks of fiber, mineral, or metal with small holes or a rough-textured surface to absorb sound, used as covering for interior walls and ceilings.
ADJUDICATIVE METHODS
The resolution of a dispute by mirroring the judicial process in that a third party decides the
controv ersy much as a judge does in court.
ACQUISITION COST
Under FHA . A loan is based
on acquisition cost, which is sale price or FHA value,
whichever is lesser, plus nonrecurring closing costs the buyer is paying per FHA rules.
ACRE
A measure of land equaling 160 square rods,
4840 square yards, 43,560 square feet, or a tract about 208.71 feet square.
ADJUSTED COST BASIS
The income tax cost basis of the property with certain additions, such as acquisition costs and
the cost of improvements, and certain subtractions, such as
depreciation in value.
ACTUAL AUTHORITY
Authority expressly given by the principal or given by the law an d not denied by the principal.
ACTUAL EVICTION
Forcible removal of a tenant from a
property by an officer after a judgment decree of possession has been issued in favor of the owner.
ACTUAL FRAUD
An act intended to deceive another, e .g.,
making a false statement, making a promise without intending to perform it, suppressing the truth.
ACTUAL NOTICE
An individual may be conscious of the
circum stance s in which the owner receive d title to the property and is at the same time is aware that the owner has not recorded the deed nor is he in possess ion of the property.
There is no constructive notice, only actual notice as to the owner of the property.
ADJUSTMENT INTERVAL
The time between permitted
changes in the interest r ate o r monthly payments , typically six months to one year, depending on the indexused.
ADJUSTMENTS
In appraising , a means by which characteristics of a residential property are regulated by dollar
amount of percentage to conform to similar characteristics of
another residential property
ADJUSTED BASIS
The adjusted basis is equal to the purchase price plus buying.
AD VALOREM TAX
A property tax based upon value.
AD VALOREM LIEN
Refers to Gen eral real es tate
tax.
AD VALOREM
According to value
ADJUSTABLE RATE NOTE
A note whose interest
rate is tied to a flexible index.
ADMINISTRATIVE AGENCY
A government agency
that administrates a complex area of law, adopting an
enforcing detailed regulations that have the force of law.
ADMINISTRATIVE LAW JUDGE
A law judge that
conducts hearings enforcing the detailed regulations that
have the force of law, by a government agency. It is a
complex area of law.
ADMINISTRATOR
A person appointed by the p robate court to manage and distribute the estate of a deceased pers on when no executor is named in the will or there is no will.
ADJUSTED COST BASIS
For tax purposes it is
the cost of the property plus improvements and minus
depreciation, amortization, and depletion.
ADMINISTRATOR
A person appointed by the
probate court to administer the estate of a deceased
person. His or her duties include making an inventory of the assets, managing the property, paying the debts and expenses, filing necessary reports and tax returns, and distributing the assets as ordered by the probate court.
ADVANCES
Transfer of funds from a lender to a borrower in ad vanc e on a loan. Mon ey adv anced by a beneficiary under a trust deed to pay real estate taxes or other items to protect the lender's interest under the trust
deed. Also refers to additional funds loaned under an open-end trust deed or mortgage.
ADVANCE FEE ACCOUNTS
A verified copy of
advance fee accounts must be sent to the owner of
advance fee funds every quarter.
ADVANCE FEE AGREEMENTS.
For DRE approval, an
advance free agreement must state the total amount of
advances fees to be paid. An advance fee agreement may not
include a guarantee the transaction will be ompleted.
ADVANCE COMMITMENT
The institutional investor _s
prior agreement to provide long-term financing upon the
completion of construction; also known as a take-out loan
commitment.
ADVANCE FEES
A fee paid in advance of any services
rendere d. Som etimes unlawfu lly charged in c onnec tion with
that illegal practice of obtaining a fee in advance for the
advertising of prope rty or a busin ess for sale., with no intent to
obtain a buyer, by persons representing themselves as a real
estate licen sees, or repres entative of a licensed real estate firm.
ADVERSE INTEREST
A purpose in opposition to the interest of another party (as for example, with a buyer and a seller)
ADVERSE POSSESSION
A method of acquiring
property based on open and notorious possession, under a
claim of right, color of title, continuous use for five years, and
the payment of taxes. A method of acquiring property through continuous use of that property while paying taxes on it.
ADVERTISING (COSTS)
Purchased spac e in a newspaper,
magazine or other medium used to attract public attention to a
commodity for sale or lease. They should be based on
projected vacancies, turnover market conditions. Where you
advertise depen ds on w ho are the customers that you want to reach.
AFFIANT
One who makes an affidavit or gives evidence.
AFFIDAVIT OF TITLE
A statement in writing , made under oath by seller or grantor, acknowledged before a Notary Public in which the affiant identifies himself or hers elf and affiant‘s
marital status certifying that since the examination of title on the contract date there are no judgments, bankruptcies or divorces, no unrecorded deeds, contracts, unpaid repairs or improvements, or defects of title known to the affiant and that affiant is in possession of the property.
AGE-LIFE METHOD OF DEPRECIATION
Straight-line Method of Depreciation.
AGENCY
A special relationship of trust by which
one person (agent) is authorized to conduct business,
sign papers, or otherwise act on behalf of another person
(principal).
AGENCY CONFIRMATION STATEMENT
The Agency Disclosure Addendum will always be used by the selling broker whenever Agency Confirmation Statement is required . An A gency Confirmation Statement is required in a transaction involving the lease of one-to four unit residential property for more than one year.
AGENCY COUPLED WITH AN INTEREST
When the agent has a personal interest in the subject of the agency; as when one co-owner has been authorized by the others to sell the property.
AGENCY DISCLOSURE ADDENDUM
This required when a broker is involved in negotiating the sale of one to four unit residential property. This defines and explains, in general terms, the words and phrases used to express the agency relationship of brokers to the parties of the residential sale transaction. Refusals to
sign the Agency Disclosure Addendum could occur
when: owners refuse to list with the broker FSBO seller's
refusal to accept an offer and when buyers refuse to sign a deposit receipt offer presented for consideration.
AGENT
One who represents another called a principal and has auth ority to act for the princip al in dealing with third parties . The relationship is referred to
as an agency. Someone authorized to act for another
(called the principal) in business matters.
AGENT , GENERAL
An agent authorized to handle all of the principal's affairs in one area or in a specified area.
AGENT , SPECIAL
An agent authorized to do
everything that can br lawfully delegated to a
representative.
AGENT , UNIVERSAL
An agent authorized to do everything that can be lawfully be delegated to a representative.